Marketing Report: iPhone Market Analysis and Recommendations

This report provides a comprehensive market analysis of Apple's iPhone, examining its background, current market situation, and relevant stakeholders. It delves into market trends, including the demand for innovative and cost-effective products, the impact of economic factors, and the importance of user experience. The report explores various market segmentation methods, ultimately recommending a target market based on demographic, psychographic, and behavioral variables. It utilizes the 5C analysis and SWOT analysis to assess the company's strengths, weaknesses, opportunities, and threats. The report recommends that Apple focuses on innovation and justifying its premium pricing to retain and expand its market share. The report concludes with recommendations for how Apple should market to the selected target market.

MBA-marketing Management

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Executive Summary
In the time of competitive business in the electronic market, it is critical that companies make
their strategies according to the market trends. This report analyses the iPhone background. It
also analyses the current market situation which suggests that there is a trend in the market
where people are looking for the products that are interactive, innovative and are available at
lower rates. The economic environment in the world is not making positive environment for
the sale of the premium products. This company has many stakeholders associated with it
along with many collaborators. This report also illustrates the segmentation method that can
be used by iPhone to select as many people as possible. The most appropriate target market
for this company is the people who wants premium products and are ready to spend money if
it provides value to their money. For this it is recommended that company makes regular
innovations to satisfy the needs of these targeted consumers.

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Content
s
INTRODUCTION.................................................................................................................................2
Background...........................................................................................................................................2
Current market situation........................................................................................................................2
Most relevant way to segment the market.............................................................................................5
Recommendation for the selected target market....................................................................................6
Conclusion.............................................................................................................................................7
References.............................................................................................................................................7

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INTRODUCTION
It is critical for any company to understand the situation of the market and hence
understanding its suitability in the market. Situational analysis provides a company to make
their strategies accordingly so as to gain competitive advantage over the rival’s products
(Huang and Jiang 2018). It is also crucial that firm understands the trends in the market so
that they can place their product in a manner where they can gain competitive advantage over
the rivals. The product that will be selected for this report is Apple’s IPhone. This report is
going to analyse the current market situation including the trends that is having the impact on
the brand. It also analyses the most relevant method of segmenting the market and hence
providing recommendation for the selected target market.
Background
Apple is one of the biggest consumer electronics and IT Company and iPhone is one of its
best-selling products. First iPhone was launched on 29th June 2007 and from then many
versions of it has been produced. Apple has more than 2.2 million applications for the iPhone.
There have been 12 versions of it launched by the company after 2007. Latest version of
iPhone that has been launched by the company is iPhoneX. All these versions have been
successful because of the innovations that were present in it along with the premium pricing
which was attached with the product.
Current market situation
Market situation in different parts of the world is changing at much speed and this flexibility
in the environment is forcing companies to rethink about the strategies they have made for
themselves so as to gain competitive advantage over the rivals. In order to understand the
market situation some of the factors that need to understood are:
Trends: Trends is towards the products that are innovative and are available at lower cost. In
the last few versions of IPhone, there has not been improvement in the products in terms of
innovative features and people are demanding some exceptional features that too at lower
products. Since other companies are providing these features at lower prices hence people are
also getting attracted towards these products (Giachetti, 2018). The sales growth of new
versions of IPhone has not been similar as others. Artificial intelligence and augmented
reality are some of the areas in which most of the competitors are looking to operate in.
People are demanding for the products that have exceptional camera quality and have battery

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backup that is lasts long. The recent trends in the industry showed that people are moving
towards mobile phones that promise durability both in terms of hardware and software that is
available in the market. Mobile phone companies are working hard to increase the actual
screen size and this is the major reason why the notch models have been more successful than
other models. Features such as sliding camera and increasing curvature of screen are some of
the trends that are attracting people towards their products (Quicksprout, 2018). App’s safety
should be in-built. Making mobiles phone interactive has become the base following which
companies are forwarding their product development program and are gaining competitive
advantages over the rivals.
Economic: The economic environment is not so good. The European and American region is
facing many challenges in the financial growth. This is not creating so many job
opportunities as some times back. This is reducing the overall expenditure capacity of the
people and hence they have started to not only look at the products that are innovative but are
also looking for the brands that are available at the lower cost. Apple needs to look at the
emerging markets like India and China as well as other emerging economies in the South
East Asian region. There is also increase in Taxation on the premium products in different
markets and hence it has become difficult for the products like Apple to reduce the pricing
(Feng and Yu, 2019). This becomes further difficult for the company like Apple that is using
price skimming strategy. Economic challenges have also become bigger because there is a
trade war going on between China and U.S. as both are bigger markets for iPhone.
Product’s experience: People are demanding for the experience from iPhone that is totally
different form their rivals. This product has one of safest software used in it when compared
with all the products that is available in the market when compared with all the competitors in
the market. People also find iOS to be user friendly. Since its software is capable of handling
large numbers of features without getting hang hence it has been one of the most successful
products in the market. Both design and features that Apple offers in its iPhone is unique and
hard to imitate hence adding value to the overall experience of the customers (Spence, 2017).
Even after having higher prices people prefer iPhone because it provides desired value for the
money they are paying.
Relevant stakeholders: There are many stakeholders that are attached with the company.
This includes suppliers from different parts of the world, iPhone manufacturers such as Hon
Hai Precision Industry Co., Ltd, Apple Inc. who makes its software, consumers who are the

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actual purchaser. Other stakeholders of the company include government and investors from
different parts of the world (Ghelani, 2011). They have large base of loyal customer who
ensures that sales will not reduce to significant level. The leadership of the company in the
hands of Tim Cook also has a significant role in the success of the organisation as it is his
visionary leadership that is promoting company to make innovations in a particular direction.
Collaborators: In order to make perfect product for the consumers, Apple makes
collaboration with many companies. For instance they have made collaboration with the
companies like Hon Hai Precision Industry Co. for making their hardware (Apple Inc. 2019).
They need to add more collaborators so as to improve the performance of their products.
Competitors: There are many competitors of iPhone from different parts of the world. The
major competitors of the company include companies like Samsung, Google Pixel, Redmi,
One plus, Huawei, Honor, LG, HTC etc. These companies have the capacity to change the
trends in the world market. In this also, the firms such as One Plus and Samsung are also
competing with Apple’s iPhone to target the same group of customers. These competitors
also have innovative products and products are available at all the prices but lower than
Apple. This is attracting customers towards them.
Most relevant way to segment the market
There are different ways to segment the market. Selection of the segmentation strategy must
be done on the basis of the products that company is offering. Most relevant way to segment
the market is by using different types of variables. The segmentation for iPhone is as follows:
Types of Segmentation Segmentation Criteria iPhone target segment
Geographic Region International/Domestic
Density Semi-Urban/Urban
Demographic Age 19-65
Gender Male and female
Life-cycle Stage Young bachelor as well as
Newly married couples
Income Middle and Higher income
groups
Occupation Professionals, executives,
and leaders.

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Behavioural Benefits sought Maximum value in the
market.
Degree of loyalty Switchers and Hard core
loyal
User Status People who loves to
premium and innovative
products.
Personality Careless & Easygoing
psychographic Lifestyle Mainstreamer individuals.
Social Class Higher and middle classes.
This type of segmentation helps the company to find the best suitable target segment on the
basis of different types of variables. All these variable acts as a matrix using which company
can make sure that the audience that they have selected are correct in all terms i.e. in terms of
the age and their priorities, also in terms of geographic area, psychographic and behavioural
terms (Dolnicar, Grün and Leisch, 2018). In order to understand the target market they can
use, 5 C analyses is SWOT is essential.
5 C analyses of iPhone
 Company: This Company is one of the biggest in the industry and offers products in
different ranges and are of different types. They have high image in the market having
innovation culture within the firm (Apple Inc. 2019).
 Customers: Their major customers could be the people that are rich as well as the
people in the upper middle class having higher wages..
 Competitors: The major competitors of the company include companies like
Samsung, Google Pixel, Redmi, One plus, Huawei, Honor, LG, HTC etc. They are
capable of bring changes in the industry.
 Collaborators: The major collaborator for the iPhone includes companies like Hon
Hai Precision Industry Co., AT&T and Verizon (Apple Inc. 2019). Apple also
collaborates with the partners alike Cisco, Accenture, Deloitte and General Electrics,
IBM, SAP and Salesforce so as to maximise the experience that consumers had while
using their product.

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 Climate: Climate change is having impact on the product in terms of the fact that this
company needs to ensure that they are using appropriate packaging for the products.
SWOT analysis
Strength
 They have huge brand loyalty (Apple Inc. 2019).
 Their products are of high quality hence they can easily set prices on the higher side.
 They have premium image which their customer feels that it will be worthy to get
associated with.
Weakness:
 Lowering the price will rip of its image hence the new versions will should be priced
appropriately.
 Too much vague changes in their latest model which is not actually adding value to its
overall product.
Opportunities
 iPhone have opportunities in the growing markets like India, China and South-East
Asia.
 They have opportunities in making iPhones more users friendly.
Threats
 The economic environment of the world is not performing well (Apple Inc. 2019).
 Large numbers of smartphones with similar features at lower prices.
Recommendation for the selected target market
The selected target market for this product is the people that are rich and belongs to executive
class. However the increasing salary group of the upper middle class has promoted Apple to
aim at this population also and include them as their major target market. Company needs to
become more market focused than product focused so as to attract these target segments.
For this targeted segment is:

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 In the mobile phone industry loyalties does not stands for long hence Apple needs to
do innovations that are actually useful and improves the standards of living of the
people. This is justified in terms of the fact that people want to get connected with the
latest of technologies and the company that will bring disruption in the technology
will be able to create bigger market space for themselves (Ernst and Dolnicar, 2018).
 It is critical for the company to ensure that they justify the price what they are
charging for their products. This can be understood in terms of the fact that people
want maximum value for their money and the companies that fail to meet this
requirement in their products will not sustain in the international market. In the last
few updates done by the company, they have been failing in making changes that
actually counts for the company.
 This target segment of the company has no issues in spending money hence Apple
might lose their targeted audience if they are not able to improve on the areas such as
technology and branding.
 It is also recommended that this company looks at making their iPhones more
interactive so that it can serve multiple problems faced by the people in their daily
life. For this they will have to really work in the areas such as usage of Artificial
Intelligence (Wilson, et al. 2019).
 Since most of the people that are using the iPhones come from executive and
professional backgrounds hence company needs to add more business related features
that can solve business related problems in their products.
Conclusion
From the above based report, it can be concluded that Apple’s iPhone is one of the most
successful product in the market. Innovation and brand image are the two factors that have
promoted it as the company that is able to attract largest possible set of customers. There is a
trend going in the industry where people are demanding for the products that are innovative
and are available at reasonable costing. The best way to segment the market is to take use of
different types of variables and use it as a matrix to reach to best possible customer that can
be targeted. It is recommended that in the coming versions of iPhone company does
innovations that actually makes sense and justifies its price.

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References
Apple Inc. 2019. The world’s experts in enterprise are also our partners. [Online] Available
at: https://www.apple.com/in/business/partners/. [Accessed on 1st August 2019]
Apple Inc. 2019. Annual Report. [Online] Available at:
http://www.annualreports.com/Company/apple-inc [Accessed on 1st August 2019]
Dolnicar, S., Grün, B. and Leisch, F., 2018. Market Segmentation Analysis. In Market
Segmentation Analysis (pp. 11-22). Springer, Singapore.
Ernst, D. and Dolnicar, S., 2018. How to avoid random market segmentation
solutions. Journal of Travel Research, 57(1), pp.69-82.
Wilson, T.V., Chandler, N., Fenlon, W. and Johnson, B. 2019. How the iPhone Works.
[Online] Available at: https://electronics.howstuffworks.com/iphone13.htm [Accessed on 1st
August 2019]
Feng, J. and Yu, K., 2019. Moore's law and price trends of digital products: the case of
smartphones. Economics of Innovation and New Technology, pp.1-20.
Ghelani, R.N. 2011. 10 Significant Apple Business Partners. [Online] Available at:
https://www.cnbc.com/2011/08/25/10-Significant-Apple-Business-Partners.html [Accessed
on 1st August 2019]
Giachetti, C., 2018. Explaining Apple’s iPhone Success in the Mobile Phone Industry: The
Creation of a New Market Space. In Smartphone Start-ups (pp. 9-48). Palgrave Macmillan,
Cham.
Huang, C.J. and Jiang, J.C., 2018. Research of smartphone industry outsourcing decision
model. Journal of Information and Optimization Sciences, 39(3), pp.725-737.
Quicksprout, 2018. 14 Mobile Trends That Are Dominating 2019. [Online] Available at:
https://www.quicksprout.com/mobile-trends/. [Accessed on 1st August 2019]
Spence, E. 2017. Apple's Surprising Collaboration To Improve Your New iPhone. [Online]
Available at: https://www.forbes.com/sites/ewanspence/2017/02/13/apple-iphone-wireless-
charging-statement/#7eca396e4eb3. [Accessed on 1st August 2018]

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